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42 EXIM BANK MALAYSIA ANNUAL REPORT 2022

MANAGEMENT DISCUSSION AND ANALYSIS

Medium- to long-term trade credit STRATEgIC DIRECTION
takaful/insurance facilities
Our strategy focuses on positioning EXIM as a preferred financier and advisor for
global business, whilst contributing to the growth of Malaysia’s economy through
Medium- to long-term trade credit
trade and investments partnership worldwide. The priority now is to maximise
takaful that has a policy term of more
our potential by:
than one year is offered by the Bank to
enable Malaysian companies to venture
into new and unfamiliar markets.
The Bank provides specific takaful 1 Preserving and enlarging capital
policies to cover the export of capital
goods or services with lengthy
manufacturing and/or payment periods
2 Positioning to capture profitable growth with healthy balance sheet
and high contract values.
Overseas investment takaful is provided
to protect overseas investments 3 Reaffirming our commitment to stakeholders
against certain political risks,
such as losses arising from restrictions
on the conversion or transfer of local 4 Strategic partnering to capitalise business opportunities
currency, expropriation, wars and civil
disturbances and breaches of contract
by counterparties.
Reinforcing our performance culture and entrenching process
5 improvements in all areas, including cost and productivity
The Bank also offers specific takaful
facilities to provide medium- to
long-term Shariah-compliant coverage
Nevertheless, the post pandemic era has brought in more challenges towards the
to Malaysian contractors and
world economy and Malaysia is not spared. EXIM Bank takes the opportunity to
manufacturers undertaking one-off
make improvement by realigning its financing and investment, as well as gearing up
contracts for export of capital goods,
the bank’s competencies in adapting the new way of doing business post pandemic.
turnkey projects, construction works
or rendering services abroad against
During the pandemic, EXIM had set up strategic actions and improvement for
commercial, economic and political risks
the betterment of its operation as follows:
and losses occurring outside Malaysia
due to events that are beyond the INVEST IN TECHNOLOgY –
control of the contractor, manufacturer RESTRuCTuRE THE BuSINESS – Invest in the business enabler to
accelerate assistance to sectors
or its buyer. Year to date 2022, further improve our technology and
affected by the pandemic
Bank’s total exposure under medium control framework
long-term trade credit insurance/takaful
Provide financial relief through Significant investment in
amounted to RM9.38 billion.
Moratorium and R&R to borrowers technology as business and
effected by the pandemic operation enablers
As at 31 December 2022, Bank’s total
exposure under both ST and MLT trade
credit insurance/takaful amounted to BACK TO BASICS – IMPROVEMENT IN PROCESS AND
RM19.51 billion. Focus on delivering mandate with STAFF CAPABILITIES – promotes
reasonable growth learning and development culture
Putting trade as well as Embed compliance culture and
SME and Commercial at heart cultivating EXIM core value (teamwork,
of the business efficiency, accountability, integrity,
openness)